To The Moon

$Baidu Group-SW (09888) $It rose more than 7% during the session. As of press time, the stock price rose 6.97% and is now quoted at HK $127.40, with a turnover of HK $977 million.

On December 22, American online ride-hailing platforms Uber and Lyft announced that they had reached a cooperation with Baidu and planned to launch a pilot project of driverless taxis (Robotaxi) in the UK in 2026. According to public information, at present, the number of unmanned orders of Carrot Kuaipao per week has exceeded 250,000, and the cumulative number of travel services provided worldwide has exceeded 17 million. The cumulative number of service orders has surpassed Waymo, becoming the world's number one self-driving travel service provider.

It is worth noting that Baidu Group announced earlier this month that some media reported that the company planned to spin off its non-wholly-owned subsidiary Kunlun Core (Beijing) Technology Co., Ltd. for independent listing. The company would like to clarify that it is currently evaluating the proposed spin-off and listing. If the proposed spin-off and listing takes place, it will be subject to relevant regulatory approval procedures, and the Company does not guarantee that the proposed spin-off and listing will take place. Shenwan Hongyuan released a research report saying that Baidu's self-developed AI chip Kunlun Core is expected to enter a period of heavy volume.

Baidu (BIDU) Sell Put Profit and Loss Analysis

1. Strategy structure

Investors in$Baidu (BIDU) $Options onSell a Put option (sell Put naked)：

• Sell Put (Short Put)

  • Strike price K = 125

  • Premium received = $2.58/share

  • Contract multiplier = 100

The strategy belongs toBullish/NeutralPremium strategy. The core judgment of investors is:BIDU Won't Expire Significantly Below $125, even if it falls slightly, it is hoped to gain profits through premium.

2. Initial income

Premium received from selling Put are:

• Premium = $2.58 per share

• Initial revenue per contract = 2.58 × 100 =$258

👉 This is the strategy when opening a positionImmediate access to cash flow。

3. Maximum profit

Maximum profit = premium received

• Maximum profit =$258/contract

The occurrence conditions are:

• BIDU Expiration Price ≥ 125

• Put options out of the money and go to zero

• Investors don't need to buy stocks, keep all premium

4. Maximum loss

The downside risk of naked selling Put is greater.

• If BIDU drops extremely to 0:

  • Investors will be bought into stocks at $125

  • Real costs offset by premium

Maximum loss (per share):

• = Strike price − premium

• = 125 − 2.58

• =$122.42

Maximum loss (per contract):

• = 122.42 × 100

• =US $12,242

👉 In theoryUnderlying shares with risks close to holding 125 costs, but a buffer of $258 less than buying shares directly.

5. Break-even point (BEP)

Break-even point calculation method:

• BEP = Strike Price − premium

• = 125 − 2.58

• =$122.42

Maturity judgment rules:

• BIDU < 122.42 → Loss

• BIDU = 122.42 → No Profit, No Loss

• BIDU > 122.42 → Earnings

6. Risk and return characteristics

• Maximum benefit: $258/contract (limited)

• Maximum loss: $12,242/contract (larger)

• Profit-loss ratio: about 1: 47 (obviously asymmetric)

• Substantial risk: equivalent to$122.42 Cost Takeover BIDU Stock

7. Applicable situations

This Sell Put policy is suitable for the following situations:

• InvestorBullish on BIDU in the medium and long term

• Willing to be inBuy underlying shares around $122.42

• Judging that the stock price will not experience a systematic sharp drop in the short term

• Hoping to passTime value decayCapture premium gains

• The account has sufficient security deposit or cash guarantee capacity (Cash-Secured Put)